Achi news desk-
The Assistant Secretary for Economic Policy of the Department of the Treasury of the United States, Eric Van Nostrand said on Thursday his country’s decision to implement a price cap on Russian oil after the latter invaded its neighboring Ukraine and he said that the decision made Russia sell oil at reduced rates to others. countries, including India.
“We know that the Indian economy has a lot at stake in the Russian oil trade, and it has a lot at stake from the global supply disruptions that the price cap is designed to avoid .The price cap aims to limit Putin’s revenue and maintain global oil supply – essentially by creating a mechanism for India and other partners to access Russian oil at reduced prices,” he said, speaking at a session organized at his office Ananta Center with the aim of negotiating phase two of the price cap on Russian oil.
“The purpose of the price cap is to limit Putin’s revenue and maintain global oil supply – essentially by creating a mechanism for India and other partners to access Russian oil at reduced prices. The first year of the price cap was a successful one. those standards: global oil markets remained well supplied while Russian oil traded at a significant discount to global oil,” he added.
The US official underlined that the US and the price cap coalition have limited Russia’s options to sell oil to other countries.
“Last summer and this fall, we saw Russian investments in new infrastructure to sell oil outside the jurisdiction of the price cap begin to bear fruit, and the discount on Russian oil decreased. In response, the United States and The Price Cap Coalition has revived our enforcement efforts and focuses on limiting Russia’s options to sell outside the price cap. Today, even the Kremlin has acknowledged that these efforts force Russia to sell at greater discounts to global consumers like India,” he said.
“The successful adoption and implementation of such a new policy is an important diplomatic achievement, reflecting the unity of the Coalition against Putin’s war. Our engagement with Indian partners — in the public and private sectors — was an essential part of the process given India’s vital role in the global oil trade,” he added.
The United States, other G7 countries and the European Union announced a price cap of USD 60 per barrel on Russian oil at the end of 2022 in response to Moscow’s attack on Ukraine in February of that year.
In October 2022, the US Treasury began imposing sanctions on tankers it suspected of carrying oil above the price cap, and has since designated around two dozen tankers. The cap prohibits Western companies from providing services such as insurance, transport and financing of oil sold above the cap.
The price cap seeks to cut Russia’s ability to finance the war in Ukraine by reducing its oil revenues while also ensuring global oil markets are well supplied. Western sanctions have shifted much of Russia’s oil trade from traditional customers in Europe to India and China, and forced some carriers to turn to a so-called “shadow fleet” of aging tankers, which the Treasury says it cuts into Russian revenues.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it’s all here, just a click away! Login Now!
This story has been published from a wire agency feed without text modifications. Only the heading has been changed.
Catch all Business News, Market News, Breaking News Events and Latest News Updates about Live Mint. Download the Mint News App for Daily Market Updates.
More less
Published: 04 April 2024, 02:48 PM IST
